BIR Ruling [DA-375-98]

August 20, 1998 BIR RULING [DA-375-98] Laya Mananghaya Salgado & Co. 22/F Antel Corporate Center 139 Valero Street Salcedo Village Makati City Attention: Mr . Mariano C . Ereso, Jr . Gentlemen : This refers to your letter dated July 30, 1998 requesting for authority to use computer-generated BIR Forms instead of the usual BIR-printed forms needed in the preparation of filing income tax returns and for registration purposes of your clients. It is represented that your firm has experienced difficulties in using pre-printed BIR Forms which require the manual inputting of data; that the clerical work of inputting data may result in errors that may cause your clients undue delay in the filing of their tax returns; that it is the desire of your firm to eliminate the possibility of delay arising from clerical errors; that it will conserve the wastage of valuable resources and facilitate both the preparation of drafts and the correction of the returns; and that the forms you would like to computerize and print are the following: Form Name New Form No. Old Form No. 1. Annual ITR for individuals 1700 1701A earning purely compensation income 2. Annual ITR for self-employed, 1701 1701 professionals, estates and trusts 3. Annual ITR for corporations 1702 1702 and partnerships 4. Quarterly ITR for self- 1701Q 1701Q employed, professionals, estates and trusts 5. Quarterly ITR for corporations 1702Q 1702Q and partnerships 6. Monthly remittance return of 1601 1743W income taxes withheld 7. Documentary Stamp Tax 2000 Declaration 8. Application for authority to use 1900 loose leaf/computerized books of accounts 9. Application for Registration 1901 1556-A for self-employed, professionals, estates/trusts 10. Application for registration 1902 for individuals earning pure compensation income and one- time taxpayers 11. Application for registration of 1903 1556-A corporations and partnerships 12. Monthly remittance return of 1601 1743W income taxes withheld 13. Application for registration 1905 information update 14. Application for Authority to 1906 1953A Print Receipts, and Invoices 15. Monthly VAT Declaration 2550M 2550A 16. Quarterly VAT Return 2550Q 2550 In reply, please be informed that Sections 74 and 75 both of the Tax Code of 1997, pertinent portion of which reads: "SEC. 74. Declaration of Income Tax for Individuals . "(A) . . . the declaration shall contain such pertinent information as the Secretary of Finance, upon recommendation of the Commissioner may, by rules and regulations prescribe . . .." "SEC. 75. Declaration of Quarterly Corporate Income Tax . Every corporation shall file in duplicate a quarterly summary declaration of its gross income and deductions on a cumulative basis for the preceding quarter or quarters upon which the income tax, as provided in Title II of the said Code, shall be levied, collected and paid. . . .." What is significant about the cited provisions are that the requirements to be indicated in the return are those which are prescribed by the Secretary of Finance; and that the latter is not precluded from modifying from time to time the requirements to effect the computation and collection of income tax. The Tax Code does not prohibit the use of forms other than the ones supplied by the BIR. It merely prescribes what are to be contained in the return; hence, if a computer-generated form contains all the required information as those with the ones printed by the BIR, no legal impediment could be cited for its use. In view thereof, authority is hereby granted to you to use computer-generated BIR Forms instead the usual BIR printed forms in the preparation of the annual/quarterly returns of your clients. (BIR Ruling No. 083-92 dated March 19, 1992) cdt With respect to your request to use loose leaf/computerized books of accounts, application for registration information update and to print receipts and invoices, the same is likewise granted subject to the mandatory requirements to be submitted by the taxpayers with the BIR imposed under Revenue Memorandum Order No. 54-98, to wit: (A) Registration of New Taxpayer (1) Application for registration/Taxpayer registration Update (TRU) Form; (2) TIN Application form, if applicable; (3) Sketch of business site of taxpayer, if necessary; (4) Registration Fee, if applicable; (5) Exemption Certificate, if applicable; (6) Photocopy of the following: (a) Mayor's Permit & Municipal License (b) DTI Certificate of Registration of business name, for single proprietorship; or SEC Certificate of Registration, for corporation or partnership (c) Articles of Partnership or Incorporation, for juridical persons (d) Marriage Contract (for individuals) (e) Birth Certificates of dependents (for individuals) (f) Unit or agency's charter for Government Agencies & Local Government Units. (B) Securing Authority to Print Receipts and Invoices (1) For New Taxpayer (a) Application for Authority to Print Receipts and Invoices (b) Job Order (c) Final and clear sample of receipts and invoices (d) Application for Registration/TRU Form (e) Registration Fee (2) For Old Taxpayer (a) Application for Authority to Print Receipts and Invoices (b) Job Order (c) Final and clear sample of receipts and invoices (d) TRU Form, if applicable (e) Photocopies of the following: (i) Payment of Registration Fee (ii) Previous Authority to Print Receipts and Invoices (iii) BIR Certificate of Registration (f) last booklet printed (for verification purposes) (C) Securing Permit to Use Loose-Leaf/Computerized Books of Accounts/Invoices and Receipts (1) Letter of Request or Application for Authority to use Loose-Leaf/Computerized books of Accounts/Invoices and Receipts (2) Application for Registration/TRU Form, if applicable (3) Photocopy of the following: (a) Mayor's Permit (b) DTI Certificate of Registration or SEC Registration with Articles of Incorporation or Partnership (c) Payment of Registration Fee (d) BIR Certificate of Registration, if applicable (4) Sample format to be used. LLpr This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)